Popular restaurant chain abruptly closes almost 50 locations in a week as bankruptcy rumors swirl
TGI Fridays shut down nearly 50 locations last week – amid reports the popular chain is considering bankruptcy amid mounting debts.
As of Monday, the chain operates 164 restaurants, down from 213 just a week ago, according to its online store locator.
That’s a sharp decline from over 250 locations at the start of the year.
This latest wave of closures follows 36 shutdowns in January, several more over the summer, and about a dozen last month.
No official list has been released but local media reports show that restaurants have shuttered in California, Ohio, New York, New Jersey, Florida, and Missouri.
TGI Fridays has now fully left two cities – Columbus, Ohio, and Buffalo, New York – after the latest closures.
TGI Fridays continues to shutter restaurants – with another in Brick, New Jersey serving customers for the final time on Sunday. This is the Manhattan TGI Fridays
The popular casual dining chain is the latest to struggle as Americans, frustrated with higher menu costs, opt to eat at home more.
Other chains, including Red Lobster, Applebee’s and Hooters, have also closed locations.
Founded in New York City in 1965 as a laid-back singles bar, TGI Fridays evolved into one of the first casual dining chains.
Through the 1960s, 1970s and 1980s, it was known for its pioneering food and cocktails.
However, the 1990s saw a shift in its image, as it transitioned from a nightlife spot for young professionals to a popular dining destination for families.
Despite the change, the brand thrived both in the U.S. and internationally, expanding to more than 650 locations across 51 countries.
The US arm – known as TGI Fridays Inc – was due this year to merge with Hostmore, which runs 89 TGI sites in the UK.
But the deal fell apart, as did the plan to create a larger firm listed in London.
Casual dining chains like TGI Fridays and fast food giants like McDonald’s have experienced declining sales as Americans push back against two years of menu price increases by cutting back on spending.
Hooters has closed around 40 restaurants this year
Worst hit have been the older, more traditional chains that have not modernized.
Red Lobster shut almost 100 locations in May and filed for bankruptcy, while Applebee’s shut 35.
Meanwhile, it emerged in September that Hooters is battling $300 million of debts. Earlier this year, it closed about 40 ‘underperforming’ restaurants.
TGI Fridays did not respond to the DailyMail.com when asked for a comment on the latest closures, its imminent bankruptcy or which restaurants have shut.
